Vitasoy International 0345

[winston]

Vitasoy flips to $46m profit, restores payout

by Himo Liu

Vitasoy International (0345) posted a net profit of HK$46 million for the year ended March, versus a loss of HK$159 million a year ago, and restored a final dividend of 1.4 HK cents per share.

Throughout the year, despite facing escalated raw material prices and utility costs, the company managed to generate a profit from operations amounting to HK$104 million.

This marks a significant improvement compared to the previous year when they incurred a loss of HK$213 million.

The favorable outcome can be primarily attributed to the company's successful implementation of cost reduction measures across its operations, strategic promotional efforts in mainland China and an increase in government subsidies received by its Hong Kong operation compared to the previous year.

Vitasoy responded to escalating costs by raising prices last October in its mainland China market, followed by price increases in Hong Kong and Australia in April this year.

During the fiscal year 2022/2023, the group received government subsidies amounting to HK$65 million specifically related to Covid-19, compared to the HK$20 million received in the prior fiscal year 2021/2022.

The firm proposed a final dividend of 1.4 HK cents per ordinary share, together with an interim dividend of 1.3 HK cents, bringing the total dividend to 2.7 HK cents.

Source: The Standard

https://www.thestandard.com.hk/section- ... res-payout

[winston]

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CLSA Downgrades VITASOY INT'L (00345.HK) to Underperform, Cuts TP to $13.3

CLSA highlighted in a report that the sales of VITASOY INT'L (00345.HK) in the second half of fiscal year 2023 fell 7% YoY, mainly due to a 20% decline in mainland sales, although the growth momentum of its Hong Kong business continued.

While management has shown strong determination to accelerate sales in China by diversifying its product portfolio and improving channel management, the broker believed the implementation process will take time, especially given VITASOY's conservative management style relative to its major competitors.

Related News: VITASOY INT'L Annual Results Swing into Profit of $45.721M; Final Div 1.4 Cents

On the margin side, CLSA expected VITASOY to increase its marketing activities to support sales, which may result in higher advertising and promotional costs.

The broker downgraded VITASOY from Outperform to Underperform, and lowered its target price from $16.2 to $13.3.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... r-news/HK6

[winston]

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VITASOY INT'L (00345.HK) Interim NP $163M, Up 14.8%; Interim DPS 1.4 Cents

VITASOY INT'L (00345.HK) announced the financial results for the interim period ended 30 September 2023.

The revenue declined 6.9% YoY to HK$3.391 billion.

The net profit amounted to HK$163 million, up 14.8% YoY.

EPS was HK15.2 cents.

An interim dividend of HK1.4 cents per share was declared against a dividend of HK1.3 cents per share in the corresponding period of the previous year.

Dividend History
Announce Date Event Particular
2023/06/20 Final D:HKD 0.0140
2022/11/18 Interim D:HKD 0.0130
2022/06/29 Final No Dividend
2021/11/25 Interim No Dividend

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

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Consumers are getting cost-conscious, says Vitasoy

Vitasoy International (0345) saw its net profit rise by 14.7 percent year-on-year to HK$163 million for six months ending September and declared an interim dividend of 1.4 HK cents per share.

Revenue during the period, however, declined 7 percent to HK$3.39 billion from a year ago due to a relatively high base last year, the food and beverage firm said.

Operating profit sank 19 percent to HK$171 million from a year earlier, while the gross profit margin rose 2.8 percentage points to 50.5 percent.

If the currency impacts and government subsidies received in the previous corresponding period are excluded, its interim net profit would have jumped 99 percent.

The operating profit in China, which is the group's main profit driver, grew 44 percent in local currency despite a 6 percent fall in revenue.

Vitasoy said that mainland consumers are now becoming more price-sensitive, believing that product pricing is growing at a slower pace than in the past.

The firm added that it has no intention to hike prices in the second half of its fiscal year despite higher raw material costs after raising prices in October last year.

Source: The Standard

https://www.thestandard.com.hk/section- ... ys-Vitasoy

[winston]

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Plant-based profits: Vitasoy looks to Asian growth to bounce back from challenges in Oceania

27-Nov-2023

By Pearly Neo

Tofu and beverage brand Vitasoy hopes the performance of its soy milk and tea businesses in Asian will help it bounce back from manufacturing and logistical challenges faced in Oceania over the past six months.

Source: Food Navigator

HTTPS://WWW.FOODNAVIGATOR-ASIA.COM/ARTI ... IN-OCEANIA

[winston]

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Vitasoy International (345)

Analysis：

During the interim period of the financial year 2023/2024, despite continuing high raw material costs, Vitasoy International (00345) revenues falling by 7%, but gross profit margin increased from 47.7% to 50.5%.

Profit attributable to equity shareholders of the company increased by 15%.

On a constant currency basis, revenue dropped 3% from a relatively high base last year due to Mainland China customers placing advanced orders in September 2022 ahead of an anticipated price increase in October 2022.

Profit from operations and profit attributable to equity shareholders of the company, net of currency impact and excluding COVID-19 related government subsidies received in the previous interim period, increased by 15% and 99% respectively.

Mainland China was the main profit driver, with profit from operations recording a growth of 44% in local currency, equal to an operating margin of 10%.

This was the result of organisational redesign as well as more efficient spending and the containment of operating costs during the interim period.

In the second half of the financial year, company expects to continue to focus on improving our sales execution and restoring revenue growth, while simultaneously containing costs and achieving greater efficiencies throughout its operations.

For the medium- to long-term, the company are confident in the growing potential of sustainable plant-based food and beverages as well as our ability to expand our core products and strategically accelerate growth, and it is expected to continue striving for structural target profitability across all operations and gradually scaling up the business.

Strategy：
Buy-in Price: $7.18, Target Price: $7.86, Cut Loss Price: $6.80

Source: Phillips